DirecTV profits surge

Earnings Brief

DirecTV Group, the nation’s top satcaster, saw a fourfold surge in profits despite slower subscriber growth as CEO Chase Carey cited “higher quality” subs.

Net income rose to $370 million last quarter from $95 million the year before. Revenue grew 13% to $3.7 billion at the El Segundo, Calif.-based company controlled by News Corp.

It’s currently the subject of intense negotiations between News Corp. and John Malone’s Liberty Media. The two are trying to swap Malone’s hefty chunk of News Corp. stock for News Corp.’s stake in DirecTV.

DirecTV said it added 165,000 net subs during the third quarter — fewer than the 265,000 added a year earlier — but up from the 125,000 added in the second quarter.

DirecTV has started tightening credit policies in order to cut down on high-risk customers, resulting in fewer but more lucrative subs.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading